China’s Huawei Technologies and US chipmaker Qualcomm have entered into a multi-year, broad patent licensing agreement covering technologies including 5G, computing, artificial intelligence and networking.
The agreement includes cross-licensing of the two companies’ patent portfolios across these technology areas. It also includes Qualcomm’s purchase of certain Huawei US patents covering computing, AI, networking and other technologies, according to Huawei.
The transaction is subject to the necessary regulatory approvals before it can be completed. Huawei and Qualcomm said the agreement reflects their commitment to intellectual property rights and licensing practices consistent with fair, reasonable and non-discriminatory (FRAND) principles.
The agreement marks the first patent licensing deal between Huawei and Qualcomm to cover 5G technologies. The financial value of the transaction has not been disclosed.
Huawei said the agreement is expected to take the total value of its patent licensing agreements to more than $6.9 billion once completed. The company also said its intellectual property licensing business has generated positive revenue since 2021, reflecting its continued investment in research and development.
Huawei has increased its R&D spending in recent years as US trade restrictions introduced since 2019 have limited the company’s access to advanced chips and critical software. The company has increasingly sought to generate returns from its extensive intellectual property portfolio through licensing agreements.
Huawei made its first licensing payment to Qualcomm in 2001. It received its first licensing income in 2011 from Motorola, according to the Reuters report. The latest agreement with Qualcomm follows a patent licensing deal with HP Inc announced by Huawei in August.
Qualcomm said the agreement reflects the recognition of its contributions to foundational wireless technologies and its 5G technology leadership. John Han, Executive Vice President and General Manager of Qualcomm Technology Licensing, said the agreement “reaffirms industry recognition of Qualcomm’s 5G technology leadership and the success of Qualcomm’s 5G SEP licensing program.”
Han added that the agreement also reflects “Qualcomm’s recognition of Huawei’s continued innovation and intellectual property in 5G and other technology fields.”
Alan Fan, Huawei’s Chief Intellectual Property Officer, said Huawei’s long-term investment in fundamental R&D has contributed to innovation in mobile communications and other technology areas. He highlighted Huawei’s contributions to 4G and 5G standards, including the use of polar codes for signal transmission.
“This agreement not only demonstrates the value of Huawei’s innovations, but also recognizes Qualcomm’s foundational contributions to modern communication technologies,” Fan said.
The agreement comes as both companies continue to build and license technologies across the global communications and computing ecosystem. For Huawei, the deal adds to its growing patent-licensing business, while Qualcomm continues to expand licensing arrangements around its foundational wireless technology portfolio.
The transaction will be completed after the required regulatory approvals are received. The agreement does not involve any other business cooperation between the two companies beyond the patent licensing arrangements described in the announcement.
